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PAVmed Inc. (PAVM)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 headline EPS materially beat sparse Street expectations on non-operating gains (mark-to-market of Lucid equity) and MSA income, while revenue was de minimis and missed a small consensus; non-GAAP loss narrowed meaningfully. GAAP diluted EPS was $0.34 vs S&P Global consensus of $(0.29), while revenue was $8k vs $10k consensus; non-GAAP adjusted loss was $(0.07) per share . Values retrieved from S&P Global.*
  • Balance sheet and structure stabilization continued: Lucid deconsolidation, debt-for-preferred exchange (Series C), and improved cash to $2.7M; residual convertible notes at fair value of $6.6M remain an overhang .
  • Veris momentum provides the operating narrative: OSUCCC – James strategic partnership (≥1,000 patients in year one; 300 implants post-clearance) and favorable FDA interactions targeting 1H 2026 filing for the implantable monitor .
  • Near-term stock catalysts skew around Lucid’s reimbursement path (MolDX Medicare coverage decision, which management continues to describe as “imminent”) and execution on Veris’ OSU commercial rollout; both were emphasized as focus areas on the call .

What Went Well and What Went Wrong

What Went Well

  • “Well positioned” platform post-structural cleanup: “PAVmed…is very well positioned to operate as a diversified commercial life sciences company with multiple independently financed subsidiaries under a shared services model” (CEO) .
  • Veris commercial inflection: Entered a long-term strategic partnership with OSUCCC – James (EHR integration; ≥1,000 patients first year; 300 implants post-clearance; registry and clinical trial) and reported favorable FDA engagement for the implantable monitor with 1H 2026 filing target .
  • Non-GAAP operating discipline: Non-GAAP operating expenses were $4.431M; non-GAAP adjusted loss narrowed to $(0.910)M ($(0.07)/sh) despite minimal revenue, underscoring cost control and non-dilutive income streams (MSA, grants) .

What Went Wrong

  • Revenue minimal and missed a small consensus: Q1 revenue was $8k vs S&P Global consensus $10k; deconsolidation of Lucid removed EsoGuard revenue from PAVmed’s P&L . Values retrieved from S&P Global.*
  • Going-concern and liquidity risk remain: Management disclosed substantial doubt about continuing as a going concern without additional capital and revenue scaling; negative working capital of ~$6.1M as of 3/31/25 .
  • Capital structure overhang: $6.6M fair value of the September 2022 senior secured convertible note remains; Series C preferred is convertible (~23M common at $1.07 if fully converted), adding potential dilution; Z warrants expired April 30 .

Financial Results

Multi-quarter snapshot (oldest → newest)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Thousands)$996 $10 $8
Diluted EPS ($USD)$1.44 $0.12 $0.34
Operating Expenses ($USD Thousands)$12,574 $5,198 $5,454
Non-GAAP Adjusted (Loss) per Share ($USD)$(0.54) $(0.06) $(0.07)
Cash & Cash Equivalents ($USD Millions)$0.8 $1.2 $2.7

Year-over-Year (YOY) comparison (Q1 2024 → Q1 2025)

MetricQ1 2024Q1 2025
Revenue ($USD Thousands)$1,010 $8
Diluted EPS ($USD)$(2.62) $0.34
Operating Expenses ($USD Thousands)$15,046 $5,454
Non-GAAP Adjusted (Loss) per Share ($USD)$(0.99) $(0.07)

Estimates vs Actuals (Q1 2025)

  • Revenue: Actual $8k vs Consensus $10k* → Miss. Values retrieved from S&P Global.*
  • Diluted EPS: Actual $0.34 vs Consensus $(0.29)* → Bold beat on non-operating items. Values retrieved from S&P Global.*
MetricActualConsensusOutcome
Revenue ($USD Thousands)$8 $10*Miss
Diluted EPS ($USD)$0.34 $(0.29)*Beat

Note: Consensus coverage was thin (Revenue: 2 est.; EPS: 1 est.). Values retrieved from S&P Global.*

Revenue and P&L composition (Q1 2025)

ItemQ1 2025
Veris subscription revenue ($USD Thousands)$8
Lucid EsoGuard revenue (not consolidated) ($USD Millions)$0.8; tests processed: 3,034
Management Services Agreement (MSA) income from Lucid (Other Income) ($USD Thousands)$3,150
Change in FV – Equity Method Investment (Lucid) ($USD Thousands)$21,004
Non-GAAP Net Operating Expenses ($USD Thousands)$4,431

Guidance Changes

Metric/TopicPeriodPrevious GuidanceCurrent GuidanceChange
Veris implantable physiologic monitor – FDA filing1H 2026n/aTarget filing 1H 2026; favorable FDA engagement (no in-person follow-up needed) New timing detail
Veris–OSUCCC James strategic partnership2025 launchPilot complete Long-term partnership; EHR integration; ≥1,000 patients first year; 300 implants post-clearance; registry and clinical trial New commercial agreement
Lucid EsoGuard – Medicare coverage (MolDX)2025Preparing/near submission (Q3’24 narrative) “Continue to believe” coverage decision is imminent Maintained qualitative stance
Liquidity/runway – Lucid (context for PAVmed exposure)As of Q1 2025n/aEnded Q1 with >$40M pro forma cash; balance sheet strengthened via offerings Informational

Earnings Call Themes & Trends

TopicQ3 2024 (prior-2)Q4 2024 (prior-1)Q1 2025 (current)Trend
Corporate structure & Nasdaq complianceDeconsolidation of Lucid; debt restructuring plan to regain compliance Regained compliance with equity and bid price; debt exchange planned “Well positioned” shared services model; Series C preferred issued Stabilized
Lucid reimbursement & channelsMedicare coverage package complete; concierge/employer initiatives First commercial coverage (Highmark); concierge traction; record volumes Management reiterates coverage decision “imminent”; 3,034 tests in Q1 (Lucid) Reimb. inflection pending
Veris commercial progressOSU pilot completed Pilot extended; financing arrangements Long-term OSU partnership; EHR integration; registry; 1H 2026 filing target Execution advancing
Biopharma expansionn/an/aActively evaluating clinical and late preclinical assets; leverage platform New vector
Capital structure itemsDeconsolidation; planned exchange Debt exchange + equity bolster equity; Z warrants outstanding Z warrants expired Apr 30; convertibles at $6.6M FV; ~23M potential C-pref shares at $1.07 Residual overhang manageable

Management Commentary

  • Strategic posture: “PAVmed…is very well positioned to operate as a diversified commercial life sciences company with multiple independently financed subsidiaries that operate under a shared services model.” – Lishan Aklog, CEO .
  • Veris FDA path: “We…reengaged with FDA…so favorable that we did not have to follow up with an in-person meeting…with an FDA filing targeted for the first half of 2026.” .
  • OSU partnership scope: “The commercial agreement is to enroll at least 1,000 patients in the first year and 300 Veris implants once it’s cleared.” .
  • Financial framing: “Non-GAAP loss of $910,000…Operating expenses…approximately $5.4 million, which includes stock-based compensation…$1 million and deal expenses of $200,000.” – CFO .

Q&A Highlights

  • OSU pilot feedback: Platform met all pre-specified metrics (patient satisfaction, clinical success, outcomes); no immediate platform changes needed; learnings on call-center triage and alert customization will inform broader rollouts .
  • Exclusivity and scale: OSU holds local advancement rights but no constraints on broader commercialization; template intended for replication across dozens of NCI centers .
  • Biopharma rationale & financing: Leverage PAVmed’s clinical execution and shared services to incubate early-stage oncology/cardiometabolic assets; subsidiaries to raise their own capital, tapping deeper biotech pools; model parallels Lucid and Veris .
  • Capital access: Management cited aligned long-term investors; Veris financing implied a ~$35M pre-money; expects additional tranches and capital access for biopharma initiatives when appropriate .

Estimates Context

  • Coverage was very limited in Q1 (Revenue: 2 estimates; EPS: 1 estimate). PAVmed’s actual EPS materially beat due to non-operating items (mark-to-market equity method gain on Lucid and MSA income), while minimal Veris subscription revenue missed a small revenue consensus . Values retrieved from S&P Global.*
  • Implication: Street models likely need to separate operating run-rate (Veris subs; non-GAAP OpEx) from volatile below-the-line items (equity method FV, debt FV), and may lift EPS near term while keeping revenue/OpEx largely unchanged. Values retrieved from S&P Global.*
Metric (Q1 2025)ActualConsensusEst. Count
Revenue ($USD Thousands)$8 $10*2*
Diluted EPS ($USD)$0.34 $(0.29)*1*

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Operating baseline: Core PAVmed revenue is now Veris subscription revenue; Q1 revenue was $8k, while non-GAAP OpEx was $4.431M—focus on Veris ramp and OSU rollout to close the gap .
  • EPS quality: Q1 GAAP EPS strength stemmed from Lucid mark-to-market (+$21.0M) and MSA income ($3.15M); these are not reflective of recurring operating profitability and can be volatile quarter to quarter .
  • Catalysts: (1) Lucid MolDX Medicare coverage decision (management: “imminent”); (2) Veris OSU launch metrics/EHR go-live; (3) FDA interactions pace toward 1H 2026 filing for the implantable monitor .
  • Balance sheet risk: Going-concern disclosure and negative working capital highlight the need for continued discipline and timely capital access; $6.6M fair value convertibles and convertible preferred represent potential dilution/overhang .
  • Strategy optionality: Biopharma expansion offers potential upside optionality leveraging shared services, with financing expected at subsidiary level to reduce parent dilution .
  • Watch list items: MSA cash collections and any reserve requirements, additional Veris financings (including warrant exercises), and incremental NCI-designated center partnerships .
  • Trading lens: Near-term share moves likely tied to reimbursement headlines (Lucid) and tangible Veris adoption data; EPS volatility from FV marks suggests focusing on non-GAAP OpEx and cash KPIs for operating trajectory .

Footnote: Values retrieved from S&P Global.*